Find Shelter From Earnings' Chill on Stocks

It could be a very cold winter on Wall Street. As more companies report that revenues are slowing, and sometimes even declining, investors are increasingly hedging stock portfolios into mid-January in anticipation of a sharp market decline.

This newfound cautiousness represents a change in investor behavior. Until Tuesday, when the Dow Jones Industrial Average fell more than 200 points on weak corporate earnings and renewed fears...